Contractor Bonds in Texas

Unlike California, Nevada, Utah, and Arizona, Texas does not have a statewide contractor licensing system for most general contractors. However, many Texas cities and counties — including Houston, Dallas, Austin, San Antonio, and Fort Worth — require local contractor licenses and associated bonds for work within their jurisdictions. Specialty trades such as electrical, plumbing, HVAC, and irrigation have state licensing requirements that may include a bond. Altamira can help you identify the specific bonds required for your Texas license and jurisdiction.

Texas contractors most commonly need: (1) License/permit bonds required by municipalities for city and county contractor licenses; (2) Performance bonds guaranteeing project completion, required on Texas government contracts; (3) Payment bonds protecting subcontractors and suppliers on public works; and (4) Subdivision bonds guaranteeing infrastructure improvements in real estate developments. The Texas Little Miller Act requires performance and payment bonds on public works contracts above $50,000. Federal projects above $150,000 require Miller Act bonds.

The cost of a Texas contractor bond depends on the bond type, the required bond amount, and your credit history. Municipal license bonds are typically inexpensive — often $100–$300 per year for smaller amounts. Performance and payment bonds for larger construction projects are priced as a percentage of the contract value (typically 1%–3%) and require financial documentation. Altamira works with multiple surety companies to find competitive rates for Texas contractors, regardless of bond type.

Yes. The Texas Government Code (Little Miller Act) requires performance and payment bonds on public works contracts with state agencies and local governments when the contract exceeds $50,000. Some municipalities have lower thresholds. The performance bond guarantees project completion, and the payment bond protects subcontractors and material suppliers. Altamira can provide bid bonds, performance bonds, and payment bonds for Texas contractors bidding on government projects of all sizes.